Form 1099-K: IRS Updates to FAQ’s
Revised FAQs for Form 1099-K are now available! Discover the important details from the IRS and prepare yourself for the upcoming filing season.
February 22, 2024
With reporting season in full swing, it often becomes more apparent that the cornerstone of accurate information reporting lies in meticulous upfront identity collection and validation. Comprehensive identity verification safeguards the integrity of regulatory reporting and neglecting this crucial step can result in hefty fines and penalties from the IRS and other relevant regulatory bodies.
At Comply Exchange, our expertise lies in navigating the challenge of accurate data collection and validation, and the complexities associated. Our products offer comprehensive support for US information reporting and tax withholding, crucial for most any organization. As the IRS bolsters its efforts with new talent and technology, staying compliant demands a proactive and informed approach.
Simplify. Collect. Comply.
David Marley | CEO
COMING UP IN March 2024:
COMING UP IN March 2024:
IRS: Form 1042 / 1042-S Filing Deadline
As a reminder, Forms 1042 and 1042-S must be filed with the IRS and be furnished to the recipient of the income by March 15, 2024, unless extensions were filed.
Saint Kitts and Nevis: AEOI Compliance Form Deadline
The Competent Authority for the Exchange of Information for the Federation of St. Kitts and Nevis issued a reminder that the AEOI Compliance Form related to the 2022 and 2023 periods should be completed by all Reporting Financial Institutions by 15 March 2024. The form should be submitted to the Inland Revenue Department in St. Kitts or Nevis or via email to aeoi.skn@ird.gov.kn.
Singapore: CRS Registration Deadline
The Inland Revenue Authority of Singapore (IRAS) posted a reminder regarding CRS registration deadline. The deadline for an entity that became a Reporting SGFI between 1 January 2023 and 31 December 2023 is 31 March 2024.
February 2024 KEY UPDATES:
IRS Notice 2024-06: Exemption from Requirement to Electronically File Form 1042
On February 27, 2024, the IRS published Notice 2024-06. The notice announces that withholding agents, both U.S. and foreign, are administratively exempt from the requirements to electronically file Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, required to be filed in calendar year 2024. The notice also announces that withholding agents that are foreign persons are administratively exempt from the requirements to electronically file Form 1042 required to be filed in calendar year 2025. An electronic filing waiver request is not required to qualify for either administrative exemption.
IRS Issue Number 2024-06: Reminders When Filing Form 1042-S
On February 23, 2024, the IRS published Issue Number 2024-06 which includes reminders when filing Form 1042-S. These reminders are intended to help withholding agents avoid common errors that may result in underwithholding and incorrect reporting. The reminders include information around:
- Codes: appropriate codes to be used for income, status, exemption, and limitation of benefits
- Identification Numbers: including U.S. taxpayer identification number (TIN), Foreign taxpayer identification number (FTIN), and Global Intermediary Identification Number (GIIN)
- Unknown Recipients
- Effectively Connected Income (ECI)
- Treaty Benefits
IRS: Form 1099-K FAQ Updates
On February 6, 2024, the IRS revised and updated its FAQs for Form 1099-K, Payment Card and Third Party Network Transactions.
February 2024 FATCA AND CRS HEADLINES:
OECD: Cameroon Commits to AEOI
On February 14, 2024, OECD announced that Cameroon has committed to implement the international Standard for Automatic Exchange of Financial Information in Tax Matters (AEOI) by September 2026.
OECD: Tax Identification Numbers
On February 25, 2024, the OECD published updated information on Tax Identification Numbers for Jersey.
Bermuda: CRS Reportable and Participating Jurisdictions
The Bermuda Ministry of Finance published an updated list of reportable jurisdictions and list of participating jurisdictions for CRS 2023 reporting period.
Cabo Verde: FATCA IGA Status
The U.S. Department of the Treasury updated the FATCA IGA Status of Cabo Verde to In Force (2-7-2024).
Guernsey: Bulletin 2024/2
On February 14, 2024, the Revenue Service of the States of Guernsey published Bulletin 2024/2. The Bulletin contained information on the following:
- Registration of all financial institutions
- Informing the Revenue Service of a failure to obtain a valid Self-Certification
- Archiving financial institutions in IGOR
- Filing deadlines – FATCA/CRS
Guernsey: CRS & FATCA Compliance Information Notice 2024/1
On February 23, 2024, the Revenue Service of the States of Guernsey published CRS & FATCA Compliance Information Notice 2024/1. The purpose of the notice is to reflect aspects of compliance with the obligations under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) where issues have been identified during the desk-based and onsite compliance audits undertaken by the Revenue Service during 2023.
Isle of Man: 2024-26 Tax Strategy
On February 20, 2024 the Government of the Isle of Man published 2024-26 Tax Strategy. Among many policies the treasury plans to pursue, the treasury plans to implement the changes to the International Standards for Automatic Exchange of Information in Tax Matters (CRS 2.0 and the Crypto-Asset Reporting Framework) issued in June 2023.
Singapore: CRS Reportable Jurisdictions
On February 1, 2024, the Inland Revenue Authority of Singapore (IRAS) posted an updated list of reportable jurisdictions for 2024 CRS reporting. As a reminder, Reporting SGFIs are due to submit 2023 CRS information by 31 May 2024.
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